By Andria Cheng

As Wal-Mart makes heavy investment to bolster its online operation, it’s building a new logistics system that includes building new warehouses as well using its stores to ship orders, the Wall Street Journal reported. Citing current and former company executives, the Journal added Wal-Mart is being “forced” to come up with its own system because the world’s largest retailer known for its efficient supply chain for its 4,000-plus stores hasn’t yet cracked the code on how to deliver goods economically to its online shoppers.

The Journal, citing former company executives, said the discount giant was late to invest in online distribution because of a culture clash between sales-driven online engineers at California-based Walmart.com and profit-driven logisticians in its home base in Arkansas. That had led Wal-Mart to use makeshift space in store-serving distribution centers and third-party warehouse operations shipping Apple tablets or Samsung phones, the Journal reported.

While Amazon has more than 40 warehouses in the U.S., Wal-Mart until recently only had one company-owned and online-dedicated distribution center in Georgia, the Journal said.

As a result, Wal-Mart’s online shipping cost $5 to $7 per parcel, compared with the average of $3 to $4 per parcel for Amazon, the Journal quoted analysts as saying, adding that the difference was even more glaring because some of Wal-Mart’s popular orders are things like $10 packs of underwear.

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About Behind the Storefront

Behind the Storefront is a blog about all things retail. It’s aimed at investors, shoppers and anyone else with a passion for learning about what drives consumer behavior. Hosted by Andria Cheng, Behind the Storefront will cover the business, brands and shopping behavior that’s behind some of the biggest companies, and largest employers, in the world. You can reach Andria at Acheng@marketwatch.com.